Navab Capital Takes Aim at $1 Billion Deals

The new investment team at the firm, which includes professionals from such firms as KKR, Carlyle and Warburg Pincus, plans to raise $3 billion to do deals in the upper middle market and above, the firm’s founder tells The Deal.

The Deal

Navab Capital Partners LLC founder Alexander Navab told The Deal the firm plans to pursue buyouts of about $1 billion or more as it gets to work this year with seven core investment professionals.

Navab said the firm’s sweet spot is upper-middle-market deals, about $1 billion enterprise value and up, with the flexibility to do larger deals with co-investors. New York-based NCP is focused on healthcare, technology, media and telecom, financial services and fintech as well as the consumer sector. It plans to be more opportunistic on cyclical businesses such as energy and industrials with a focus on North America.

NCP plans to raise a buyout fund with a $3 billion target, according to market sources.

Navab worked on more than 50 deals while heading up KKR & Co.‘s (KKR) Americas business from 2007 to 2017 and before that as TMT deal chief for KKR. He declined to name any specific company acquisitions or exits that may drive investor interest in his firm.

“I’m proud to have run the KKR Americas business for 10 years,” Navab said. “For me, it’s about putting together a great team, the progress that team can make and the performance over time. Our new firm is a collection of everyone’s deep experience in private equity and in the industry sectors where we intend to invest.”

Those team members include partners Robert Berlin (formerly of Baupost Group LLC), Ram Jagannath (Carlyle Group LP), Annette Rodriguez (Warburg Pincus LLC) and Mark Schroeder (Deloitte LLP), who is also the firm’s CFO. Navab is founder and CEO of the firm. NCP also includes three managing directors: Michael Gaviser (KKR), Bhavna Vashisht Katkar (KKR) and Georgia Levenson Keohane (Columbia Business School).

Goldman Sachs Group Inc.‘s Petershill unit is a strategic partner in the firm. NCP marks the first strategic partnership with a new firm for Petershill. Further details on the financial role for Petershill are undisclosed. The unit does not own a stake in Navab Capital Partners.

NCP has engaged Simpson Thacher & Bartlett LLP as legal adviser with partners Gary Horowitz and Barrie Covit leading the relationship.